Richard is a patient in a nursing home for 45 days of 2020. While in the nursing home, he incurs total costs of $13,500. Medicare pays $8,000 of the costs. Richard receives $15,000 from his long term care insurance policy, which pays while he is in the facility. Assume that the federal daily excludible amount for Richard is $380.

Of the $15,000 what amount may Richard exclude from his gross income?